system 1 & system 2

Is It Loyalty or Habit?
Gallery
Is It Loyalty or Habit?

Business & Management, Marketing & Consumer Behavior

Is It Loyalty or Habit?

Marketing theories on loyalty mostly dismiss the idea that consumer's repeated usage of the brand may be a result of a habit, rather than any emotional commitment to the brand. As a result, loyalty marketing often misses one vital component of generating customer stickiness - trying to convert brand choice into a habit. Neuro-imaging suggests that as actions are repeated, the activity in areas of brain involved in decision making actually decreases. This calls for an additional perspective of looking at loyalty as creating a habit loop. It may not involve significant additional resources, but can substantially enhance the effectiveness of the loyalty programs or marketing.

By Ashok Sethi|2024-04-12T03:02:15+00:00May 18th, 2021|Categories: Business & Management, Marketing & Consumer Behavior|Tags: branding, consumer behavior, customer loyalty, dual-system theory, emotions, habit, marketing, neuroscience, system 1 & system 2|

Why We Use Less Information Than We Think to Make Decisions
Gallery
Why We Use Less Information Than We Think to Make Decisions

Behavioral Theory & Insights, Marketing & Consumer Behavior, Society & Everyday Life

Why We Use Less Information Than We Think to Make Decisions

How much information do you need to make up your mind? Our research in various domains of decision making shows that we make decisions more quickly and based on less information than we think. This has important implications in an age in which information is plentiful.

By Nadav Klein|2022-02-17T06:17:21+00:00April 3rd, 2019|Categories: Behavioral Theory & Insights, Marketing & Consumer Behavior, Society & Everyday Life|Tags: behavioral economics, bias, big data, consumer behavior, data science, dating, decision making, heuristic, information, information processing, internet, management, marketing, marriage, nudge, product trial, social psychology, stereotypes, stereotyping, system 1 & system 2, uncertainty, voting|

Three Behavioral Insights into the Aging Mind
Gallery
Three Behavioral Insights into the Aging Mind

Behavioral Theory & Insights, Society & Everyday Life

Three Behavioral Insights into the Aging Mind

Behavioural science has contributed much to the understanding of decision-making in the last few decades. We now understand how heuristics and biases can influence our thinking, perceptions, choices and behaviour. Yet, many of the frequently cited studies from behavioural science have been conducted on students, typically in their early twenties. Consequently, people often ask whether these findings still hold in other generations: Does our decision making process differ as we get older? Do we become more or less ‘rational’? And if minds do differ, how does the 20 year old mind differ to the 70 or 80 year old mind?

By Crawford Hollingworth & Liz Barker|2022-02-17T07:03:13+00:00November 27th, 2015|Categories: Behavioral Theory & Insights, Society & Everyday Life|Tags: affect, ageing, aging, bias, choice, choice deferral, choice overload, decision making, emotion, framing, heuristic, overchoice, retirement, salience, system 1 & system 2|

The Battle for Consumers Is Often about Beliefs, Not Consumer Experience
Gallery
The Battle for Consumers Is Often about Beliefs, Not Consumer Experience

Marketing & Consumer Behavior

The Battle for Consumers Is Often about Beliefs, Not Consumer Experience

Marketers increasingly mold their work around the customer experience. They manufacture rich, immersive interactions, carefully crafted to resonate with consumers. A 1998 Harvard Business Review article on the ‘experience economy’ noted that “experiences are a distinct economic offering.” Quite simply, the argument runs that delightful customer experiences add value and build loyalty. And yet many companies find that objective improvements to products and services, which are central to experience, don’t translate into customers or revenue. The fact is, renovating experience is insufficient, because how we perceive an experience depends deeply on our beliefs and intuitions.

By Ravi Dhar|2022-02-17T07:06:23+00:00September 25th, 2015|Categories: Marketing & Consumer Behavior|Tags: beliefs, communication, consumer behavior, consumer psychology, dual-system theory, framing, marketing, perception, persuasion, priming, salience, social influence, system 1 & system 2, trust|

Why Do People Behave the Way They Do?
Gallery
Why Do People Behave the Way They Do?

Behavioral Theory & Insights

Why Do People Behave the Way They Do?

By Eyal Winter Many of us tend to think of decision making as a process in which two separate and opposite mechanisms are engaged in a critical struggle, with the emotional and impulsive mechanism within us tempting us to choose the “wrong” thing, while the rational and intellectual mechanism that we also carry inside us [...]

By Eyal Winter|2022-02-17T07:13:58+00:00June 29th, 2015|Categories: Behavioral Theory & Insights|Tags: behavioral economics, bias, decision making, dual-system theory, emotions, game theory, herding, neuroscience, nudge, regret aversion, system 1 & system 2|

Rationality and Affective Biases. Do You Know What They Are?
Gallery
Rationality and Affective Biases. Do You Know What They Are?

Behavioral Theory & Insights

Rationality and Affective Biases. Do You Know What They Are?

A common interpretation in behavioural finance is that rationality is the result of a pure cognitive process which can be behaviourally biased. While cognitive biases are influences that affect rationality from within the cognitive system, affective biases refer to those influences that affect the cognitive system from outside. Unfortunately, the assumption that rationality is a pure cognitive process is not well motivated. Rationality results from the intrinsic interaction between cognition and emotions.

By Ariel Cecchi|2022-02-17T07:16:54+00:00June 21st, 2015|Categories: Behavioral Theory & Insights|Tags: behavioral finance, bias, decision making, dual-system theory, emotions, habit, information processing, investing, investment biases, neuroscience, overconfidence, risk aversion, system 1 & system 2|